Coronavirus Business Interruption Loan
A Government guarantee scheme available to business customers with a short to mid-term funding need due to the Covid-19 pandemic
- Minimum amount £25,001 – maximum £5,000,000
- Terms from 1 to 6 years
- The Government provides Barclays with a guarantee for 80% of the loan, however, you are responsible for repaying 100% of the facility
- A Business Interruption Payment (BIP) will be paid by the Government to Barclays covering interest plus arrangement and security fees for the first 12 months.
- After the first 12 months, interest at an agreed margin over the Bank of England Bank Rate** will be payable.
- A capital repayment holiday can be requested (subject to application) at the start of the loan or mid-term.
- Monthly capital repayments will be payable at all other times.
- Repay the loan early in full or in part, without incurring prepayment fees. For fixed rate loans, breakage costs will be charged for prepayments after the first 12 months.
To assist customers during this unprecedented time, each business will be assessed on their individual circumstances to ensure that they are offered an appropriate lending facility. Pricing will be consistent for all customers and not based on an assessment of risk.
A funding solution with flexible terms
Loans between £25,001 to £5,000,000 with terms up to 6 years are available, enabling you to select the optimum level of repayments to suit your business needs.
Loan repayments will be debited monthly by Direct Debit. Capital and interest will be calculated separately but collected in one monthly repayment. After the first 12 months, interest will continue to be payable during any capital repayment holiday.
*The Government guarantee is for 80% of the loan amount. You are responsible for repayment of 100% of the facility, not just the 20% outside the coverage of the Government guarantee. In the event of your default, we will follow our standard commercial recovery procedures, including the realisation of security, including personal guarantees, if applicable, before we make a claim on the Government guarantee. The provision of this guarantee scheme should not be construed as an endorsement or warranty of Barclays by the Government of the UK, including the Secretary of State.
This loan is partially guaranteed* by the Government, enabling us to offer loans (subject to application, eligibility and status) to businesses that would not ordinarily be eligible for bank funding due to a lack of sufficient financial security.
The loan may be used for a wide range of business needs, from buying assets to providing funding for working capital, subject to certain restrictions.
For full information click here to view the Barclay's Bank fact sheet.